Feb 23 (Reuters) - Shares of Valeant Pharmaceuticals
International Inc rose 9 percent on Tuesday, the morning
after the drugmaker said a board committee investigation into
its dealings with distributor Philidor Rx Services would result
in a profit restatement.

Valeant said based on the preliminary review, it
would restate results for 2014 and 2015 to reflect its findings
that some revenue should have been recognized at the time drugs
were dispensed to patients, not when they were delivered to
Philidor.

The company, based in Laval, Quebec, said it would release
unaudited earnings on Feb. 29 and hold a conference call.

Valeant shares, which were trading at $82.71 on Tuesday
morning, fell more than 19 percent on Friday and Monday.

In part, investors were worried that the company had not yet
set a date for its earnings announcement, which they had been
expecting by the end of February.

In addition, Wells Fargo on Friday initiated coverage with
an "underperform" rating and a valuation of $65 to $68 per
share. Wells Fargo analyst David Maris said on Tuesday in a
follow-up note that the restatement could unsettle investors.

Evercore ISI analyst Umer Raffat said investors were
expecting a big restatement after the Wall Street Journal on
Monday evening reported that the company was about to announce
an earnings restatement, based on unnamed sources. Valeant sent
out its own press release on Monday night outlining the $58
million in revenue it said was at issue.

"It ended up being fairly benign," Raffat said in an email.
Continued...